Stock Analysis

3 Growth Companies On Euronext Paris With Up To 101% Earnings Growth

ENXTPA:VU
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With the European Central Bank recently cutting rates amid signs of weakening economic growth, France's CAC 40 Index has seen a notable gain of 1.54%. This backdrop sets an intriguing stage for investors looking at growth companies with high insider ownership on Euronext Paris. In such an environment, identifying stocks with robust earnings growth and significant insider ownership can be particularly appealing. Here are three French companies demonstrating up to 101% earnings growth that merit attention.

Top 10 Growth Companies With High Insider Ownership In France

NameInsider OwnershipEarnings Growth
Groupe OKwind Société anonyme (ENXTPA:ALOKW)24.8%36%
Adocia (ENXTPA:ADOC)11.9%63%
VusionGroup (ENXTPA:VU)13.4%83.4%
Icape Holding (ENXTPA:ALICA)30.2%27.3%
Arcure (ENXTPA:ALCUR)21.4%27.5%
La Française de l'Energie (ENXTPA:FDE)19.9%31.9%
S.M.A.I.O (ENXTPA:ALSMA)17.4%35.2%
Munic (ENXTPA:ALMUN)29.2%149.1%
MedinCell (ENXTPA:MEDCL)15.8%93.9%
OSE Immunotherapeutics (ENXTPA:OSE)25.6%5.9%

Click here to see the full list of 24 stocks from our Fast Growing Euronext Paris Companies With High Insider Ownership screener.

We're going to check out a few of the best picks from our screener tool.

Lectra (ENXTPA:LSS)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Lectra SA offers industrial intelligence solutions for the fashion, automotive, and furniture markets across Northern and Southern Europe, the Americas, and the Asia Pacific with a market cap of €1.09 billion.

Operations: The company's revenue segments are distributed as follows: Americas (€172.65 million), Asia-Pacific (€118.54 million), and Segment Adjustment (€209.13 million).

Insider Ownership: 19.6%

Earnings Growth Forecast: 29.3% p.a.

Lectra, trading at 46.3% below its estimated fair value, shows substantial growth potential with earnings forecasted to grow 29.29% annually and revenue expected to increase by 10.4% per year, outpacing the French market's growth rate of 5.8%. Despite a lower projected return on equity of 13.2%, Lectra remains attractive due to its significant insider ownership and robust revenue forecasts. Recent earnings reports show sales rising to €262.29 million for H1 2024, though net income slightly declined compared to the previous year.

ENXTPA:LSS Earnings and Revenue Growth as at Sep 2024
ENXTPA:LSS Earnings and Revenue Growth as at Sep 2024

OVH Groupe (ENXTPA:OVH)

Simply Wall St Growth Rating: ★★★★☆☆

Overview: OVH Groupe S.A. offers public and private cloud services, shared hosting, and dedicated server solutions globally, with a market cap of €1.17 billion.

Operations: Revenue segments for OVH Groupe S.A. include Public Cloud (€169.01 million), Private Cloud (€589.61 million), and Web Cloud & Other (€185.43 million).

Insider Ownership: 10.5%

Earnings Growth Forecast: 101.1% p.a.

OVH Groupe, trading at 30.6% below its estimated fair value, is forecast to become profitable within three years with annual earnings growth of 101.12%. Despite a low projected return on equity of 1.7%, the company’s revenue is expected to grow faster than the French market at 9.7% per year. Recent innovations include new ADV-Gen3 Bare Metal servers powered by AMD EPYC processors, enhancing performance and sustainability in their data centers.

ENXTPA:OVH Ownership Breakdown as at Sep 2024
ENXTPA:OVH Ownership Breakdown as at Sep 2024

VusionGroup (ENXTPA:VU)

Simply Wall St Growth Rating: ★★★★★★

Overview: VusionGroup S.A. offers digitalization solutions for commerce across Europe, Asia, and North America with a market cap of €2.40 billion.

Operations: Revenue Segments (in millions of €):

Insider Ownership: 13.4%

Earnings Growth Forecast: 83.4% p.a.

VusionGroup, trading at 47.1% below its estimated fair value, is forecast to achieve annual revenue growth of 28.4%, significantly outpacing the French market's 5.8%. Despite reporting a net loss of €24.4 million for H1 2024, VusionGroup's innovative digital shelf label technology has secured major partnerships with Ace Hardware and Hy-Vee, enhancing operational efficiencies and customer experience. Analysts expect the company to become profitable within three years with strong future earnings growth projections.

ENXTPA:VU Ownership Breakdown as at Sep 2024
ENXTPA:VU Ownership Breakdown as at Sep 2024

Key Takeaways

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.The analysis only considers stock directly held by insiders. It does not include indirectly owned stock through other vehicles such as corporate and/or trust entities. All forecast revenue and earnings growth rates quoted are in terms of annualised (per annum) growth rates over 1-3 years.

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